National Development Planning of Bhutan
Presentation from student Master of Economics from Universiti Putra Malaysia year 2014.
Published on: Mar 3, 2016
Transcripts - National Development Planning of Bhutan
Rekha a/p Kanniah (Malaysia)
Norasyanti Mohd Nor (Malaysia)
Noraini Ismail (Malaysia)
Farah Zazreen Zainudin (Malaysia)
Halimatun Nazira Haji Hasan (Malaysia)
Noradila Awang (Malaysia)
PLANNING OF BHUTAN
Formal name : Kingdom of Bhutan
Citizens : Bhutanese
Capital : Thimpu
Date of Independence : August 8, 1949
Land lock between China and Tibet.
Population is 1.6 million with 97 % in rural area.
Gross National Happiness (GNH)
Establish by His Majesty the Fourth King of Bhutan: Jigme
Singye Wangchuck in 1970.
The 4 Pillars concept of GNH:
1. Good Governance
2. Socio-economic development
3. Cultural preservation
4. Environmental conservation
Lately four pillars – classified into nine domains:
i. Psychological wellbeing
iv. Time use
v. Cultural diversity and resilience
vi. Good governance
vii. Community vitality
viii. Ecological diversity and resilience
ix. Living standard
Highlights about GNH Index in 2010
Men are happier than women on average.
In urban areas, 50% of people are happy and in rural areas
it is 37 %.
Urban areas do better in health, education and living of
Rural areas do better in community vitality, cultural
resilience and good governance.
Population Economy Poverty
Governance Education Health
To confronting the rapid population growth of 3.1% per
year and its demands, including:
dependency ratio, jobs, school-age population and
health care services
dealing with continued momentum for growth
despite declining fertility
keeping up with population distribution issues in
generating disaggregated data in all sectors,to
enable better planning and formulating of more
efficient interventions aimed at disparity reduction.
To raise real incomes of rural people and create a
domestic market for increased production.
More efficient system of financial intermediation to
raise the overall level of economic activity as well as
the ratio of investment and savings to GDP; the
importance of a monetary policy that addresses
development and integration of the capital market
Expanded access to social
services/infrastructure, particularly in rural
areas and to vulnerable groups.
Increased employment generation to address
the growing urbanization that has critical
implications for poverty nationwide.
Extended credit outreach to the poor.
To promote GNH, through efficiency, transparency,
accountability, participation and equity, to bring
about socio-economic development, especially for
To strike a balance between popular participation in
development and the gradual transfer of power to
lower echelons of Government for an enabling
environment of growing development complexities
and building laws upon Buddhist precepts.
To find ways to finance expansion of the
system regardless quality.
Quality education for all without gender gap ,
including provision of sufficient and adequate
hostel facilities for girls.
To provides free medical treatment to all
citizens, and for the Royal Government is to
focusing on quality health care.
Continued to reduction of infant, under 5 and
maternal morbidity and mortality, as well as
malnutrition; cervical cancer, and to reduce
growing number of illegal abortions.
• Bhutan’s Development is guided by the document “Bhutan 2020: A Vision for
Peace, Prosperity and Happiness”, that sets out the national goals, broad targets
and overall policy principles for the next two decades.
• This document was the culmination of intensive consultations between
communities, Royal Government agencies and private and non-governmental
organizations. It provides a clear framework for development of the five-year
plans and is operationalized through the annual budgets approved by the
• The planning process involves decision-making in formulating plans and
programs, the responsibility of which is shared among a number of institutions.
The main institutions are the Gewogs, Dzongkhags and the central ministries and
• The main institutions are the Gewogs, Dzongkhags and the central ministries and
• Most programs originate from the community level though nation-wide and
thematic plans and programs can originate from the agencies at the centre.
• The preparation of the five-year plans begins at least two years ahead of the
• It normally follows a mid-term review of the on-going plan where the Gewogs,
Dzongkhags and sectors are involved.
• Next is the steps taken by Gewogs in preparation for the Five Years Plan.
Agriculture, Marketing and Enterprise
AMEPP was IFAD’s sixth project in Bhutan.
Effective from 1 July 2006 and was completed
on 31 December 2012.
The project’s objective:
“improve livelihoods of the rural poor in the
programme area on a sustainable
basis by enhancing productivity, income growth and
access to economic and social
AMEPP covered 6 dzongkhags (districts) in
Eastern Bhutan − Samdrup Jongkhar,
Pemagatshel, Trashigang, Mongar, Trashi
Yangtse and Lhuentse (from 2006 to 2012)
One of the poorest and most isolated region in
Most agriculture is carried out by smallholders
on less than 5 acres (2 ha) of land per household.
i. Supporting capital formation in crop, livestock and
ii. Improving the conditions under which enterprises and
income–generating activities are started and operated.
iii. Enhancing access to rural financial services (especially
iv. Building the capacities of grass-roots organizations and
developing skills through training.
v. Improving the common socio-economic infrastructure,
especially the road network and marketing support
• Rated as satisfactory on the basis of programme
alignment with national strategic directions. Relevance
• Rated as satisfactory as the overall combination of
project inputs effectiveness in raising production
and reducing input and marketing costs was
• Rated moderately satisfactory as the infrastructure
activities were not able to complete design
specification in relation to recommended best
• Rated as satisfactory as the extent of benefits across
the target area was variable with some households
achieving high levels of performance and others with
• Rated as satisfactory as few groups are still at a
formative stage and there is still considerable need for
Human and social
• If AMEPP hadn’t supported a shift of farming practice,
food quality wouldn’t have improved and the cost of
food would have been higher due to the transportation
costs of importation. Hence, the rating is satisfactory.
Food security and
• The result is positive but limited resources
for environmental protection. The rating
for natural resources and environment is
• Rated moderately satisfactory impact on
institutions and policies related to
• Rated moderately satisfactory as there are
• Some initiatives have been scaled up, but this has
been in response to ad hoc opportunities rather than
a proactive and systematic programme approach.
Consequently, the rating is moderately satisfactory.
• Women do seem to have benefited from the
programme and mainstreaming activities. The
rating for this criterion is moderately satisfactory.
Gender equality and
The project has been successful with the support of IFAD.
( International Fund for Agriculture Development)
The project activities were effectively help in reducing the
poverty level in targeted area.
Involvement of IFAD (International Fund for Agriculture
Development) has clearly contributed in the improvement of
connectivity and access to services, generate more income
and assets for many household and greater farm and
Shift from production-driven to value-adding
and market-led capability
The project impact on agriculture production
was far-reaching across the project area,
although not of a high intensity.
An increase in production
However, the capacity in the east to
capitalize on potential market opportunities
and add value to agriculture production is still
A key bottleneck in building capacity in enterprise development and
value chain linkages has been dependence on agriculture staff to
also carry out marketing support activities.
Agriculture officers are not qualified to offer business advice or to
assist with financial support.
Thus, there is need for different skills and additional expertise
particularly through the Department of Marketing and Cooperative
to facilitate and strengthen value chain linkage within the region
and across regional and national borders.
Groups are still dependent on government support rather
than proactively finding their own business opportunities.
However, there is limited government services and give
challenge for those who are in greater need of service.
There is need to build independence and private sector
service especially for farmers who are affordable to pay
Planning is really important
Forecast the future